US TSYS: STRONG TSY BID AHEAD NEXT WEEK'S POLICY TRIO

US TSY SUMMARY: Quiet end to week -- Tsys well bid across the curve ahead next

weeks FOMC, BoE and BoJ policy anncs', 5s30s extending 13-month steepening move

amid decent/heavy buying in 5s on day. 

- Receding sharply after tapping overnight high on the open -- US$ index

drifting near lows (DXY -.202, 96.583); equities firm (SPX +14.25, 3827.5); VIX

weak, -.55 at 12.95.

- Little react to IP/CapU data, steady Tsy bid followed Bund lead early.

Otherwise many participants were plying the sidelines, little conviction ahead

of next week's policy trio.

- Aside from better buying in 5s, concerted long end support from real$ and

carry over insurance portfolios in 10s and 30s. Little deal-tied flow to speak

of (last 2 sessions) except for late comer JP Morgan w/stealth $2.5B 4NC3

issuance. No Tsy auctions next week save 13- and 26W bills on Monday.

- Better selling soon to expire EDH9 futures since 3M LIBOR set (+0.0106 to

2.6252%, +0.0286/wk). Tsy cash/ylds: 2Y 100-03.62 (2.460%), 5Y 99-24.25

(2.425%), 10Y 100-00.5 (2.621%), 30Y 99-10 (3.034%).

US TSY FUTURES CLOSE: Still off mid-morning highs, futures surged at the bell

amid rather decent buying across the curve (+20k USM from 146-01 to -07 for

example). Note 5s/30s yld curve extends 13-month highs. Update:

* 2s10s -1.821, 14.523 (14.424L/16.929H);

* 2s30s -0.392, 57.475 (56.471L/58.333H);

* 5s30s +0.568, 61.911 (60.583L/62.356H);

Current futures levels:

* Jun Ultra bonds up 31/32 at 162-03 (161-01L/162-13H)

* Jun 30-yr Bond futures up 23/32 at 146-07 (145-14L/146-14H)

* Jun 10-yr futures up 9/32 at 122-31.5 (122-20.5L/123-03.5H)

* Jun 5-yr futures up 4.75/32 at 115-02.25 (114-28L/115-04.75H)

* Jun 2-yr futures up 1.38/32 at 106-07.62 (106-05.88L/106-08.38H)

US EURODLR FUTURES CLOSE: Soon to expire Mar'19 on lows while levels drift in

upper half of range out the strip. Current White pack (Mar'19-Dec'19):

* Mar'19 -0.012 at 97.375

* Jun'19 +0.000 at 97.395

* Sep'19 +0.005 at 97.415

* Dec'19 +0.005 at 97.405

* Red pack (Mar'19-Dec'20) +0.020-0.035

* Green pack (Mar'20-Dec'21) +0.035

* Blue pack (Mar'21-Dec'21) +0.035

* Gold pack (Mar'22-Dec'22) +0.035-0.040

US DOLLAR LIBOR: Latest settles

* O/N +0.0000 to 2.3903% (+0.0035/wk)

* 1 Month +0.0000 to 2.4817% (-0.0098/wk)

* 3 Month +0.0106 to 2.6252% (+0.0286/wk)

* 6 Month -0.0074 to 2.6717% (-0.0073/wk)

* 1 Year -0.0053 to 2.8405% (-0.0231/wk)

US TSYS: REPO REFERENCE RATES: (rate, volume) 

* Secured Overnight Financing Rate (SOFR): 2.42%, $879B

* Broad General Collateral Rate (BGCR): 2.39%, $448B

* Tri-Party General Collateral Rate (TGCR): 2.39%, $427B

US SWAPS: Spds running wider across the board, grinding off three-year lows in

the short end. Nothing structural, just a confluence of lack of swappable supply

the last couple sessions (after HEAVY issuance in Feb and early March) and

decent rate paying in 2s, 3s and 5s this morning. Latest spd levels:

Time (ET)   2Y Swap/Mid   5Y Swap/Mid   10Y Swap/Mid   30Y Swap/Mid

Fri 3:00    +0.38/11.56   +0.19/6.69     +0.56/1.75    -0.25/-22.56

1:45        +0.50/11.69   +0.38/6.88     +0.75/1.94    +0.06/-22.25

10:45       +1.00/12.19   +0.75/7.25     +1.00/2.19    +0.44/-21.88

9:30        +0.75/11.94   +0.56/7.06     +0.62/1.81    +0.44/-21.88

Fri Open    +0.38/11.56   +0.12/6.62     +0.12/1.31    +0.31/-22.00

Thu 3:00    +0.06/11.50   -0.12/6.50     -0.06/1.25    -1.06/-22.06

OUTLOOK: *** Data/speaker calendar (prior, estimate):

18-Mar 0830 Mar NY Fed Business Leaders Index (13.7, --)

18-Mar 1000 Mar NAHB home builder index (62.0, --)

18-Mar 1100 Feb Kansas City Fed LMCI (0.97, --)

18-Mar 1130 US TSY $48B 13W bill auction (912796QM4)

18-Mar 1130 US TSY $39B 26W bill auction (912796SJ9)

PIPELINE: $2.25B JP Morgan 4NC3 launched; $28.1B to price on week

Date $MM Issuer/Rating/Desc/Maturity/Yld/Leads; Priced *; Launch #:

03/15 $2.25B #JP Morgan 4NC3 fix/FRN +80

Eurodollar/Tsy options:

Eurodollar options, Pit/screen: (March expires Fri)

* +4,000 short Jun/Blue Jun 75/76 put spd spd, 2.0 net db bear curve flattener

* -10,000 short Mar 75 calls, 0.5

* +3,000 Red Mar 71/72 put spds, 3.0 vs. 97.48/0.10%

* +9,000 Red Mar 76 calls, 26.0-26.5

* +4,000 short Dec/short Mar 81 call strip, 17.5

* -8,000 Blue Mar 70 puts, 5.0vs. 97.555/0.18%

* -10,000 Dec 73/76/78 call flys, 4.5

* +5,000 Red Mar 76/77/78 call flys, 1.0

* +5,000 Green Apr 73/75 put spds, 1.0 vs. 97.68/0.10%

* +10,000 Red Jun 70/72 put spds, 5.0 vs. 97.555

* +10,000 Dec 75 calls, 8.5 vs. 97.405/0.36%

* 5,000 Green Mar 76 calls, 4.5 vs. 97.665/0.90%

* 5,000 short Sep 72/73/75 put trees on screen

* +15,000 Green Mar 76 calls, 1.0 vs. 97.62-625

* 5,000 Sep 78/80 call spds, cab

* 3,000 Jun 76 calls, .5 vs. 97.405

* -1,400 Dec 73 straddles, 23.0

* 1,000 Red Mar'20 75/81 1x3 call spds on screen

* 10,935 Jul 71 puts and 8,748 Jul 72 puts on screen

* Gold Dec 70 puts trading 5.0 in pit

* +11.5k Apr 73 puts, 1.25 vs 97.385/0.15%

Tsy options, Pit/screen

* 2,500 TYK 123/124 1x2 call spds, 8/64

* 5,000 FVM 113/113.5/114 put trees, 1.5/64 vs. 115-01.2/0.05%

* 1,500 FVK 114.5/115 3x2 put spds, 14/64

* -8,000 TYK 122.5 puts, 21/64

* 2,500 TUM 105.6/105.8 put spds, 2.5/64 vs. TUM 106.5/106.8 call spds, 3/64

* 2,000 USK 148/150/151 broken call flys on screen, 14/64

* -1,600 TYK 121/124.5 strangles sold earlier at 11/64

--MNI Chicago Bureau; tel: +1 312-431-0089; email: bill.sokolis@marketnews.com

[TOPICS: MTABLE,M$U$$$,M$$FI$,MN$FI$,MN$FX$]